Based on deficiencies in regulatory compliance, the Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs 10 Crore on the HDFC Bank. "The Reserve Bank of India has imposed, by an order dated May 27, 2021, a monetary penalty of Rs 10.00 crore (Rupees ten crore only) on HDFC Bank Limited (the bank) for contravention of provisions of section 6(2) and section 8 of the Banking Regulation Act, 1949 (the Act)," read the statement by the RBI. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Act, it said. "In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the provisions of the Act/directions. After considering the bank's reply to the show-cause notice, oral submissions made during the personal hearing, and examination of further clarifications/documents furnished by the bank, RBI came to the conclusion that the aforesaid charge of contravention of provisions of the Act was substantiated and warranted imposition of monetary penalty," the RBI said.

Source: dna May 28, 2021 15:45 UTC